SAFETY ENGINEERING AND ECONOMY

DINESH SIVARAM M

INTRODUCTION

It is a common assumption that implementing safety norms or following safety rules is expensive and not economical.

But it has been proved in the recent past that following safety norms and implementing them is actually economic

Though putting safety precautions in place can be an annoyance and an extra expense for an employer, the financial benefits can drastically outweigh the costs.

seriousness

The International Labour Organization estimates there were 47,000 deaths from occupational accidents in India in 2003, the latest year for which figures are available, an increase of 17% from a year earlier

Objective

To bring awareness about the importance of safety engineering

Prove the fact that implementation and strict following of safety rules will boost the economy of the firm by increasing the profit

Hypothesis

Money spent or invested on implementation and adherence to safety norms is ignorable or minimal when come pared to the revenue generated because of it.

SAFETY ENGINEERING

Safety engineering is a field that focuses on preventing accidents and lessening opportunities for human error in engineered environments or in engineering design.

Applied to many disciplines, including construction, aerospace, and manufacturing, public works, and product etc…

ECONOMICS

Economics is the social science that analyzes the production, distribution, and consumptionof goods and services .

MISUNDERSTANDING

TIME-CONSUMING

NOT ECONOMIC

Liabilities

serious injury

file a civil suit

employer may have to pay

Lost Labor

SKILLED LABOURS (training)

training

higher costs and lower efficiency.

Worker Benefits

WORKERS (health plans ) INJURED

Pay out (injuries and the hospital bills)

CASE STUDY - ANGLO AMERICAN MINING COMPANY ANGLOW AMERICAN Is the worlds most

diversified mining company

commodity mix Like platinum group metals, diamonds, copper, nickel, iron ore, metallurgical and thermal coal are mined

They operate on six continents with 150000 permanent and contract employees.

Cynthia Carroll

Between the years 2002 to 2007 ANGLO AMERICAN SUFFERED CLOSE TO 200 FATALITIES

In the year 2007 Cynthia Carroll became the CEO of the ANGLO AMERICAN COMPANY

She was dissatisfied with the safety knowledge of the supervisors and the managers

ACTIONS

She fundamentally rejected the assumption by some veterans that death is inevitable at such mining company because of the dangers involved in the business.

Visited mines and did a research

A decision was made and the company was shut down and was planed that after a perfunctory safety check would resume production as soon as possible

Losses

Company suffered not only due to shut down but also due to expenses incurred in training the skilled and unskilled workers, supervisors, managers etc…,

RESULT - Below are some of the data’s got from HARVARD BUSINESS REVIEW

YEARS Operating Income Revenue

2006 7874 29404

2007 8272 30559

2008 6850 32964

2009 4957 24637

2010 9763 32929

2011 11095 36548

GRAPHICAL REPRESENTATION

0

5000

10000

15000

20000

25000

30000

35000

40000

2006 2007 2008 2009 2010 2011

OPERATING INCOME IN $ US MILLIONS

REVENUE IN $ US MILLIONS

FINDINGS

As per the above strategies not only the profit went up but also the life of precious human was saved

In the year 2011, 17 employees lost their life due to accidents which is far less when compared to the year 2006 where there was a loss of 44 employees

That is a reduction of 62%.Time lost due to injuries came down by 50%. Thus ensuring more active productive hours.

Morale

Morale is very important in construction because employees have to work quickly and efficiently to meet deadlines

While safety considerations may hamper work speed, they can also increase work speed

For instance, a worker who does not have adequate protection equipment may work more slowly than one who does because making a mistake has such a higher chance of causing him injury.

SUGESTION AND CONCLUSSION

Thus It is evident that thought the is a initial cost incurred in the(SAFETY MANAGING) training of employees, purchase of safety equipment but the in the long run it actually helped not only to save the precious life of human but also for the economic growth of the organization.

THANK YOU